The Regional MSME Investment Fund for Sub-Saharan Africa S.A., SICAV-SIF (REGMIFA) is proud of having disbursed during its first six months of operations a loan portfolio of USD 13.75 million in favor of six microfinance institutions located in Ghana, Kenya, Senegal and Tanzania to support local micro-entrepreneurs.
The investments of this Luxembourg based fund, structured by KfW Entwicklungsbank and financed by several development financial institutions, are mainly denominated in local currency in order to match the currency of the borrowers lending portfolio to micro medium and small enterprises and therefore to reduce their exposure to significant volatility.
The first loans were disbursed in favor of Sinapi Aba Trust (Ghana), First Allied Savings and Loans (Ghana), Kenya Women Finance Trust (KWFT), Faulu Kenya, FINCA Tanzania and PAMECAS (Senegal). In order to hedge its currency exposure, the Fund has a strategy of developing partnerships with several hedge counterparties trading African currencies. It has already entered into an agreement with The Currency Exchange (TCX) Fund, a Foreign Exchange hedging platform specialized in currencies of emerging markets and Standard Bank and is currently in negotiation with other banks and financial institutions.
“The disbursement of these six investments constitutes an important milestone for REGMIFA and represents an important contribution to employment and entrepreneurship at the bottom of the pyramid. The Fund’s portfolio should further expand in the upcoming weeks with the planned disbursements of loans to microfinance institutions in Nigeria and Cameroon”, commented Wolfgang Kroh, Chairman of the Board of REGMIFA.
About the Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA)
Launched in May 2010, the Regional MSME Investment Fund for Sub-Saharan Africa SA, SICAV-SIF is a Luxemburg based investment fund which seeks to foster economic development and prosperity in Sub-Saharan Africa essentially through the provision of local currency medium to long-term debt financing to financial institutions serving micro, small and medium sized enterprises. Complementary to the fund’s investment activities, a dedicated Technical Assistance Facility focuses on technical support to client institutions. Initiated by the G8 Summit in Heiligendamm, REGMIFA is a Public-Private Partnership that combines funds from public and private investors, including KfW Entwicklungsbank (also acting as structuring agent), the German Federal Ministry for Economic Cooperation and Development (BMZ), the Spanish Ministry of Foreign Affairs (MAEC), the Spanish Agency for International Cooperation for Development (AECID), the Spanish Development Bank (ICO), the International Finance Company (IFC), the Belgian Investment Company for Developing Countries (BIO), Oesterreichische Entwicklungsbank (OeEB), the European Investment Bank (EIB), the French Development Agency (AFD), the French Investment and Promotions Company for Economic
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Cooperation (PROPARCO) and the Norwegian Microfinance Initiative (NMI). The Fund is managed by Symbiotics Asset Management SA, a specialized asset management company based in Geneva.
Press Contact:
Martina Bozzola
Communication Officer Symbiotics Group
Phone: +41 (0) 22 338 15 49
e-mail: martina.bozzola@symbioticsgroup.com